Zions Bancorp. is cutting out cash bonuses for its executives this year to comply with standards under the federal bailout program.
In a regulatory filing Monday, the regional bank based in Salt Lake City said its board changed the compensation arrangements for its executive officers. It will grant "salary stock" to its executives for 2010 instead of cash bonuses.
Zions said the change is being made to comply with the rules under the federal government's Troubled Asset Relief Program, or TARP. Zions got $1.4 billion in TARP funds.
The grants will take the form of stock units, or rights to shares of Zions' common stock. They'll be granted each payday, with the number of shares decided based on the stock price at the time and in proportion to the annual grant.
The right to the shares granted in 2010 will be fully vested when they are awarded. They will be settled in stock in two equal installments on Jan. 15, 2011 and Jan. 15, 2012.
Under the plan, Chairman and CEO Harris H. Simmons, who has not received a bonus since 2006, will get $282,156 in salary stock for 2010.
Vice Chairman and Chief Financial Officer Doyle L. Arnold will get $282,156 in salary stock. He last received a bonus in 2007, totaling $420,000.
A. Scott Anderson, president and CEO of Zions First National Bank, will get $136,653 in salary stock. He got a $275,000 bonus in 2008.
Scott J. McLean, the new CEO of Amegy Bank, will get $107,031 in salary stock in 2010. He got a bonus of $314,000 in 2008, while president of the subsidiary bank. The board also raised his annual cash salary to reflect his new responsibilities to $510,000, from $456,000, effective Friday.
The bank said in the filing that compensation did not change for Paul B. Murphy Jr., who resigned from his position as Amegy Bank CEO earlier this month. Murphy received a bonus of $477,000 for 2008. A bank representative could not immediately say whether he will receive a similar bonus for 2009.
Zions shares closed down 14 cents at $12.76.